Explain how the revenue from medical supplies

Assignment Help Finance Basics
Reference no: EM13839783

1. Is it "fair" for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpatient Clinic needs additional space?

2. In the past, the medical center aggregated all facility costs and then allocated the total amount on the basis of square footage. This methodology assigned an average cost rate to each patient service department, regardless of whether its space is new or old, or prime or poor. The proposed allocation for the Dialysis Center, on the other hand, requires it to bear the true facility costs of its new space. What are the advantages and disadvantages of the new methodology? Do you support the new allocation scheme?

3. If the new allocation method for facility costs is implemented, what should be the facility allocation to the Dialysis Center in 20 years, when the loan (which is the basis for the higher cost allocation) has been paid off and there are no longer any actual facility costs?

4. Explain how the revenue from medical (pharmacy) supplies is currently handled for profit and loss reporting purposes. Is there a problem with the current system? Is there a better way of reporting this revenue? If so, what is it?

5. When all issues related to the decision are considered, what is your recommendation regarding the final allocation amounts?

 

Reference no: EM13839783

Questions Cloud

Assuming that ad valorem tax is negligible : Calculate the Economic Life in STB/month for an oil lease with WI = 100%, NRI = 87.5%, lease operating expense = $5,000 per month, price of oil = $15/STB, price of associated gas = $2.25/Mscf, GOR = 500 scf/STB, oil and gas severance taxes = 7.085%. ..
When comparing different alternatives : When comparing different alternatives?
Calculate the equilibrium wage and employment : Suppose the labour market in the house cleaning industry in Quebec City can be described by the following demand and supply equations: LD = 400 - 10w and LS = 40 + 20w. Calculate the equilibrium wage and employment if the market is free. Draw a graph..
The income elasticity of demand : RAND study found that the income elasticity of demand for dental care is 0.15. Over the last one decade, income of the population has increased by 21%. Therefore, the income effect alone should a)Increase the demand for dental care by about 3% b)Incr..
Explain how the revenue from medical supplies : Explain how the revenue from medical (pharmacy) supplies is currently handled for profit and loss reporting purposes. Is there a problem with the current system. Is there a better way of reporting this revenue? If so, what is it
What is your profit : On January 1, you sold one March maturity S&P 500 Index futures contract at a futures price of 1,200. If the futures price is 1,250 on February 1, what is your profit? The contract multiplier is $250.
What should a futures contract with a one year maturity : The current level of the S&P 500 is 1,200. The dividend yield on the S&P 500 is 2%. The risk-free interest rate is 1%. What should a futures contract with a one-year maturity be selling for?
Construct a pro forma balance sheet : Pro forma balance sheet construction - Use the following industry average ratios to construct a pro forma balance sheet, for Carlos Menza, Inc.
Triple integrals to find the volume of the solid : Let D be the parallelogram with vertices (0, 0), (1, 2), (2, 2), (3, 4) - Evaluate double integrals to find the volume

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Did the authors use the correct statistical test in other

in an essay of 250-500 words use the scenario presented in part 1a above to answer the following questionswhat

  Compute projected operating profit

Boeing is the largest commercial airplane company in the world. In 1996, it began development of the 757-300, a 240 passenger plane with a range up to 4,010 miles.

  Prepayment and extension risk

Shortly after you were given this task, you became aware of a new CMO issue that has an AA-rated, 7-year Class A VADM tranche, with a 7.00% coupon that uses a Z bond to protect against prepayment and extension risk. Write a second memo to your bos..

  Publically traded health care organizations

Select one (1) of the following publically traded health care organizations: Universal Health Services (NYSE: UHS) or Health Management Associates (NYSE: HMA).

  Describe the products and the functionality

Understanding the differences between the stock market and the bond market is essential to managing corporations and investing. In your discussion, answer the following questions: Describe the products and the functionality of the stock market.

  The process requires new machinery that would cost 1968450

net present value briarcrest condiments is a spice-making firm. recently it developed a new process for producing

  Abc hospital a not for profit acute care facility expects

abc hospital a not for profit acute care facility expects to have a patient load of 20000 inpatient days next year and

  Clark dale is one of the investment portfolio managers at ac

Clark Dale is one of the investment portfolio managers at ACG in charge of managing a $15 million Treasury bond portfolio account for a trust fund. He is considering the use of Treasury bond futures in an attempt to hedge the account portfolio. He co..

  Determination of risky stock

Common stock A has an expected return of 10%, a standard deviation of future returns of 25%, and a beta of 1.25. Common stock B has an expected return of 12 percent, a standard deviation of future returns of 15 percent,

  Determine the compound annual rate of growth

How do I use the Future Value of $1 table to determine the compound annual rate of growth in earnings (n=6)?

  What is the effect on the bond price

Suppose the market interest rate declines by 100 bps (i.e., 1%), what is the effect on the bond price?

  The common stock of polybius inc just paid an annual

the common stock of polybius inc. just paid an annual dividend of 0.90 . the dividend is expected to grow at a

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd